Cardano (ADA): Whales are all in, it's time
Large investors are beginning to show strong support for Cardano (ADA), although the current technical signals indicate that the price may face a decline in the short term. The latest data points to a significant divergence between investor confidence and Cardano's actual market value.
According to information from TapTools, whales are primarily accumulating long positions. However, analyzing the ADA/USDT technical chart on a daily timeframe reveals a shift from an uptrend to a downtrend, as reflected by changes in price structure.
Although large investors are strongly participating, the technical chart still shows a short-term downtrend. However, Cardano still has the potential to undergo a minor correction before it can begin a new growth cycle.
ADA whales support the price increase move
Data from Hyperliquid Whale Tracker shows strong participation from whales in long positions for Cardano. Specifically, over 83% of current ADA positions held by whales are long, while there are only about $1.74 million in short positions out of a total of $10.32 million. More than 94% of capital is allocated to long positions, indicating that whales are using leverage to increase their exposure to Cardano's price potential.
The focus on these long positions reflects the confidence of large investors in the long-term prospects of Cardano. This also indicates that whales may have access to information and internal research that retail investors often do not easily obtain. ADA whales, with their resource and information advantage, make trades based on expectations of the long-term development of the Cardano ecosystem.
However, it is important to note that if the price of Cardano falls below significant support levels, these long positions may be liquidated, which would accelerate the downtrend in the short term. Therefore, while a price increase for Cardano is anticipated, investors need to closely monitor support levels and market-impacting factors in the near future.
Warning from technical analysis
Although the sentiment of ADA whales remains positive, according to technical analyst 'Dynamite Trader', Cardano's price action is currently showing some not-so-optimistic signals. The price of Cardano has dropped below the rising channel that strongly supported it in April and May 2025, and is now testing a critical price range between $0.75 and $0.77 — this range was once a strong support level. Now, this price range is being challenged and could turn into a resistance level.
If it cannot recover and maintain above $0.75–$0.77, the price of Cardano could continue to decrease and test lower support levels, including $0.63. If the downtrend continues strongly, the price could even drop to the $0.55 range.
Although the current short-term trend is downward, a red zig-zag pattern on the chart still indicates the possibility of recovery if the price stabilizes in the expected support area. However, accurately determining the timing of recovery is quite challenging, especially when the downtrend continues and shows no clear signs of weakening.
Conflicting signals from the market
Although many large investors are optimistic about Cardano's price potential in the future, the current technical structure suggests that the price of Cardano needs to establish a stronger foundation before it can recover.
Analyst Jesse Olson also pointed out a notable technical incident following a period of Cardano's recovery efforts. Specifically, the upward trendline from the round bottom in April has been broken, and although buy signals have appeared in some technical indicators, Cardano has still failed to surpass strong resistance levels in the market.
Although the price of ADA has begun to show signs of strong growth, this upward momentum could not be sustained and was rejected at higher resistance levels. This is clearly reflected in the MACD indicator, which has shifted to a downward trend, indicating that the strength of the downtrend is prevailing.
All these factors suggest that while the long-term outlook for Cardano remains positive, the current market still needs more time and consolidation to create a solid foundation for future recovery.
With increasing leverage in long positions and the recent market weakness, risk management becomes particularly important. If the price of Cardano continues to drop and leads to the liquidation of long positions, the market could witness a sudden shift in position structures, adding further selling pressure and pushing prices down further.
In summary, the current situation requires investors to closely monitor and implement appropriate risk management strategies. Although ADA whales are increasing their exposure to the long-term growth potential of Cardano, the current technical chart still indicates that caution is necessary in the short term. Investors should be prepared for potential volatility and only make decisions based on clear technical analyses and market signals.
